Additional tax relief for visual effects consultation

The Treasury has published a consultation on the five percentage point increase in in audio-visual expenditure credit and removal of the 80% cap on qualifying expenditure for UK visual effects costs.

The government announced in the 2024 Spring Budget that UK visual effects costs in film and high-end television programmes will receive a 5% increase in audio-visual expenditure credit – giving a total rate of 39%. It also said that UK visual effects costs will also be exempt from the audio-visual expenditure credit’s 80% cap on qualifying expenditure.

These measures will take effect from 1 April 2025.

The consultation sets out detail about how the additional tax relief will work and invites comments on policy design including the types of costs that will qualify. The document also provides the UK government’s response to submissions to the call for evidence on the UK visual effects...